Realty Income and NNN REIT Shine with Dividend Growth

A recent report highlights the impressive dividend performance of Realty Income and NNN REIT. With Realty Income boasting 651 consecutive monthly dividends and NNN REIT marking its 35th annual increase, these REITs present appealing options for income-focused investors.

Date: 28-09-2024

AI Rating: 7

According to the report, Realty Income (NYSE: O) is recognized for its consistent dividend payments, exemplified by 651 consecutive monthly dividends and a compound annual dividend growth of 4.3% over the past 30 years. Such a reliable payout positions Realty Income as a solid investment choice for those seeking income stability.

Furthermore, NNN REIT (NYSE: NNN) has recently achieved a notable milestone by reaching its 35th consecutive annual dividend increase. This achievement places NNN REIT among a select group in the market, which can generate investor interest. Additionally, the report indicates that NNN REIT aims to grow its core funds from operations (FFO) per share at a mid-single-digit annual rate, similar to Realty Income.

The stability and predictability associated with NNN REIT's investment strategy—focusing on single-tenant triple net lease (NNN) retail properties—further bolster investor confidence. With a low dividend payout ratio of around 70% of its core funds from operations, NNN REIT shows financial prudence, potentially leading to sustained dividend growth.

The emphasis on a well-diversified and strategically located property portfolio offers a safeguard against vacancies and promotes rent growth, benefiting overall profit margins. Both Realty Income and NNN REIT’s conservative financial profiles allow for continued investments in income-generating properties, ensuring that their dividends remain attractive to investors.

Stocks: O NNN